Assessing Joby Aviation’s (JOBY) Valuation After a Strong Multi‑Year Share Price Run

Joby Aviation (JOBY) has quietly traded higher this month, and that move is getting harder for investors to ignore. With shares up about 9% in the past month and 76% year to date, the market is clearly reassessing its long term air taxi story.

See our latest analysis for Joby Aviation.

That surge sits within a much bigger move, with a roughly 76% year to date share price return and an even stronger 3 year total shareholder return above 300%. This suggests momentum is building as investors warm to Joby’s long term growth story and perceived risk profile.

If Joby’s run has you rethinking what could move next, it is worth scanning aerospace and defense stocks for other names reshaping how people and goods move around the world.

After such a powerful multiyear run, investors now face a tougher question: Is Joby’s lofty valuation still underestimating the scale of its air taxi opportunity, or are markets already pricing in years of future growth?

Price to Book of 14.5x: Is it justified?

On a price to book basis, Joby Aviation’s last close at $14.22 implies a rich valuation premium compared to both peers and the wider airlines sector.

The price to book ratio compares the market value of a company to its net assets. It is a common yardstick for capital intensive and asset heavy businesses like airlines and aviation innovators. For Joby, a 14.5x multiple signals that investors are willing to pay far above the accounting value of its assets in anticipation of future commercial success and scaling of its air taxi platform.

In Joby’s case, that optimism is striking when benchmarked against alternatives. The company’s 14.5x price to book ratio looks expensive versus the peer average of 2.2x and the broader North American Airlines industry average of just 1.6x, highlighting how far expectations have already run ahead of current fundamentals.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 14.5x (OVERVALUED)

However, scaling Joby’s air taxi vision still hinges on unproven commercial demand and smooth regulatory progress, and any disappointment could quickly deflate today’s premium.

Find out about the key risks to this Joby Aviation narrative.

Build Your Own Joby Aviation Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a personalized view in just a few minutes, starting with Do it your way.

A great starting point for your Joby Aviation research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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